President William Ruto has announced a reduction in the Value Added Tax (VAT).
While speaking in Suneka, Kisii County, on Wednesday April 15, Ruto stated that VAT will be reduced from 16% to 8% for the next three months.
He also revealed that the government has allocated Ksh6.5 billion to stabilize fuel costs.
Ruto Announces 8% VAT Cut for Three Months
Ruto added that the move has been necessitated to cushion Kenyans from high fuel prices.
“We have managed to moderate prices. I am announcing today here that, in response to the fuel prices that have gone up, we have stepped in as the government with KSh 6.5 billion to reduce the cost of fuel,” he said.
“We have also reduced VAT from 16% to 8% for the next three months until we ensure that we have gone through this phase.”
The demand comes a day after the Energy and Petroleum Regulatory Authority (EPRA) increased fuel price.
EPRA Hikes Fuel Prices
EPRA on Tuesday, April 14, announced new fuel prices for the April–May 2026 cycle, with Super Petrol rising by Ksh28.69 per litre and Diesel increasing by Ksh40.30 per litre, while Kerosene remains unchanged.
It attributed the increase largely to a spike in landed costs, the price at which fuel is imported into the country, between February and March.
EPRA added that the adjustments reflect a rise in international petroleum product prices, coupled with exchange rate fluctuations and the application of statutory taxes under the Value Added Tax (VAT) framework.
The government had earlier gazetted a temporary reduction of VAT on petrol, diesel and kerosene from 16 per cent to 13 per cent, in a move aimed at cushioning consumers from rising fuel costs amid recent increases at the pump.
In a notice dated April 14, 2026, Treasury Cabinet Secretary John Mbadi said the tax relief will take effect from April 15 to July 14, 2026, and will apply to premium motor spirit (petrol), automotive diesel and illuminating kerosene.
“In exercise of the powers conferred by section 6(1) of the Value Added Tax Act, the Cabinet Secretary for the National Treasury reduces the rate of tax specified in section 5(2)(b) of the Act from sixteen per cent to thirteen per cent in respect of the goods listed in the Schedule hereto, with effect from 15th April, 2026 up to 14th July, 2026,” reads the notice.
